Guitar Center Inc.The U.S. largest retailer of music instruments and equipment has reached a restructuring agreement with key appointees, including a debt reduction of 800 800 million, the company said in a statement.
The retailer signed a restructuring support agreement (RSA) with its equity sponsor, a fund managed by private equity firm Ares Management LP, a fund managed by New Investors Brigade Capital Management and Carlyle Group, as well as its superholderities of noteholder groups.
The deal includes new equity investments of up to 5 165 million to reclaim the company, the retailer said.
The company expects to file voluntary applications for the following restructuring Chapter 11 According to the statement, U.S. Implement a prepaid economic restructuring plan in a bankruptcy court
The Guitar Center, which has about 300 stores across the country, said commercial operations would continue without any transaction under the deal.
In 2017, the company said it was looking for ways to restructure its ભાર 1.3 billion debt burden, as music lovers moved their purchases to the shopping line.
The Guitar Center began in 1959 as a homegrown store in Hollywood.
(Reporting by Shwarya Nair in Bengaluru; Editing by Kim Kogil)